Final answer:
In financial statements, companies must disclose differences between tax benefits recognized in these statements and tax returns. Typical disclosures include reconciliations of the reported tax expense to the expected amount based on statutory rates. Without specific context, it's challenging to identify a non-required disclosure.
Step-by-step explanation:
The subject of the student's question is related to the required disclosures in financial statements regarding tax benefits. Specifically, the question is about what does not need to be included in these disclosures that explain the differences between tax benefits recognized in the financial statements and the tax benefit reflected in the tax return.
Companies must provide reconciliations in their financial disclosures that show the differences between the tax expense or benefit as reported in the income statement and the tax amount that is expected based on the statutory income tax rate. This is often presented in a tax reconciliation table. Items typically included are changes due to different country tax rates, non-deductible expenses, tax credits, changes in valuation allowances, and uncertain tax positions. However, without the specific context of what options are available to fill in the blank, it's difficult to confidently provide the missing information.
Disclosures in financial statements help stakeholders understand how tax laws and accounting rules affect a company's reported financial position and performance. It is important for transparency and for investors and analysts to accurately assess the company's financial health.